Yesterday, there was a classic “sell on the news” session. It was clear early that Meta (META) and Microsoft (MSFT) weren’t going to have coattails beyond lifting some large-cap momentum stocks.

Even VanEck Vectors Semiconductor ETF (SMH) stocks took it on the chin. Applied Materials (AMAT) and Qualcomm (QCOM) stunk up the joint.

The Greed & Fear gauge is at a one-month low after ticking “extreme greed” recently.

But there was madness that some would say was beyond “extreme greed.”

Shares of Figma rallied 250% on the session, and there is no doubt that any initial public offering (IPO) in the queue, with even the smallest link to Artificial Intelligence (AI), will be rushed to the market.

Investing Lesson: Selling Too Soon

There were good commentaries from subscribers about closing a couple of positions too soon. I can tell you that for me, it's good to have these conversations, but that is also worrisome.

When there could be blowback for protecting a 30% profit generated over a few weeks, it means investors are expecting too much and willing to abandon the rules of the road. We indeed adjust the regulations from time to time, but this market tends to act on a short-term basis.

There are two occasions when it's tempting to ignore the rules.  When the market is at an all-time high, you must take a significant loss. That was the case on May 21 when we closed Fair Isaac & Co. (FICO) in the model portfolio at $1,964. It was a big hit, but since then, the stock has been annihilated. The stock suffered its worst month in history and has become a rudderless ship.

Today’s session

The jobs report was a dud, and the revisions are frightening.

I have been saying that this has been happening for months. Now, it is bubbling up to the top in our antiquated data system.

Revisions

• June just 14,000 from 144,000
• May just 19,000 from 147,000

Seventy five percent of the jobs in July came from Healthcare.

The good news is the Fed will have to provide relief, which means funds will begin to flow to small businesses, and consumers get some relief.

We are not forcing the issue this morning.

 

Comments

CP... I spent years with Edward Jones and Raymond James and left a fortune on the table. I started your service in March 2025 and am up 30+% staying true to your picks and education. Truly life-changing impact. You've earned my trust and I'm not looking back. Crazy times but I'm looking forward to the golden age!! Charles Ruhland on 8/1/2025 8:20:51 AM

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